George Rebane

Tax rates have no effect on private sector spending and investments.  Progressive shibboleth

The big news this morning (except in the lamestream) is that the US economy has grown markedly less than even the poor statistics we have been shown, and directly experienced, over the last years.  The report from the Bureau of Economic Analysis revising the published GDP data concludes that we are witnessing an even weaker recovery than what has already been identified as “the worst recovery in seventy years” (only FDR’s Great Depression recovery was worse overall, and that recovery required WW2 and the destruction of ALL of the developed economies thereby leaving us king of the hill.  Mr President, what do you have in your wallet?)

I could put up any of a number of graphics that compare this loudly hyped ‘recovery’ from real recoveries in the past, but as RR readers, you’ve already seen them.  The 31jul15 WSJ reports – “From 2011 through 2014, the economy grew at a paltry annual rate of 2%, down from the previous estimate of 2.3%.”  In toto, since 2009 the economy has grown at an annual average of 2.1%, so the growth rate is not getting any better (more here).  Progressives rejoice, you have achieved another notch of peerage with socialist Europe and the second-world countries.

Team Obama and the Dems own this ‘recovery’ lock, stock, and barrel.  They have burdened the country with regulations, laws, taxes, rogue agencies, and about every other device available to sclerotic bureaucracies known to stifle initiative, entrepreneurship, and wealth creation.  In the process, they have lowered job creation to levels that require the most ambitious regimens be brought to bear in order to put lipstick on the unemployment pig.  Their draconian policies alone explain away the stagnation in wages.  From the WSJ –

The slow-growth Obama era has given way to multiple explanations and excuses from the President’s economic advocates. They blame the hangover from the financial crisis (even six years later), foreign economic problems, the failure of government to spend and tax more, an aging population—anything but the policy differences between those previous eras and this one.

Leading lights on the left have even thrown up their hands to suggest we no longer really know what produces faster growth. Larry Summers calls it “secular stagnation,” as if it’s an illness we somehow caught. Others claim 2%-2.5% growth is about as good as we can now do, so get used to it—and keep interest rates at near-zero for as far as the eye can see.

(The numerate reader with pencil and back-of-envelope can quickly calculate that today’s celebrated 200K/month job growths don’t come close to the 300K/month jobs required to absorb population growth and indicate a real recovery.  Until then, the fed’s Lying Machine may overheat pumping out ‘data’ to invite happy dancing in the streets.)

Today the nostrums promised by leading 2016 Democrat candidates all identify the business class as the greedy who are behind purposely reducing the buying power of their customers (yes, you read that right).  And, of course, the Left’s heavily gruberized constituents respond in chorus with a mighty ‘Amen!’ when either Bernie, Lizzy, or Hillary mount the podium to repeat this mantra, the latter adding her latest lament about “quarterly capitalism” – which she promises to ‘correct’ as soon as she is elected.

The latest statements from the Democratic candidates confirm that, should one of them win, the best we can expect from any of them is Obamanomics 2.0 – that is, to double down on a demonstrable disaster.  And should Bernie or Lizzy stand behind the presidential seal on 20 January 2017, then Katie bar the door – Newsweek can again run their ‘We Are All Socialists Now’ cover.